The Ag Department said in its monthly report yesterday that Russia will resume its run as a wheat powerhouse, boosting forecasts for production and exports from the key U.S. rival on the global market.
If the government’s projections bear out, Russian wheat exports will beat the U.S. this season.
Meanwhile in the U.S., wheat production is expected to fall nearly 24% from last season on account of poor weather in the Great Plains.
This morning, Dr. Matt Roberts of Ohio State University gave an update on the wheat market to folks gathered in Aberdeen for the South Dakota Governor’s Ag Summit.
Listen —> SD Ag Summit Wheat Trends
To start this trading week – Hard Red Spring Wheat futures at the Minneapolis Grain Exchange had jumped by 40% in a little over a month. Recent data from the U.S. Commodity Futures Trading Commission showed the proportion of hedge funds and other money managers betting on spring wheat contracts had almost doubled since May.
During the panel segment on Challenges and Opportunities in the Current Ag Economy, Mike Pearson of Market to Market gave an overall assessment of the ag markets to the crowd – noting a historical trend in the ag economy that usually repeats itself every three decades.
Listen —> SD Ag Summit Ag Economy
USDA surprised some analysts by raising its domestic wheat stockpile estimate for 2017-18. USDA raised its U.S. and global corn stockpile estimates above expectations, but the agency projected lower-than-expected domestic soybean stockpiles in Wednesday’s monthly report.